If you were to poll most real estate investors, you would find that their priority is to make enough money to be able to quit their day job. For some, this happens very quickly. However, others may need to juggle two jobs for twenty years to see any progression. It all comes down to your personal experience and expectations. If you are content only closing a handful of deals a year, it would not make much sense to leave the security of an existing job. On the other hand, if you are getting more deals than you know what to do with, it may be time to make investing your sole focus. Having said that, it is important to differentiate between the prospects of wanting to quit your day job and needing to.
There is a lot that goes into becoming a successful, full time investor. Most investors fail to recognize that they are in fact running a business. A $20,000 check from a rehab may look nice, but after all expenses are paid and everything is said and done, the bottom line will be significantly less. The ability to juggle money and run your business like a business is the first test as to whether or not you are ready to go full time.
In addition to financial responsibility, you need to be bringing in enough leads that you think they are not being worked properly because of your day job. This is a good problem to have. Whatever marketing and lead generation you are using must be working and you have to find the time to call potential leads back. If you are in this situation, you should start with considering hiring someone to work these deals for you in the day instead of simply quitting your job. After having someone take a quick application, you should be able to text or email the applicant and speak with them after work hours. The biggest mistake you can make is quitting your day job before you have a solid pipeline set up that you are confident can support you and your family.
How you look at the real estate business can also be a good indicator of whether or not you need to leave your full time job. Between rehabbing, wholesales and buy and hold rental properties, there are many different ways to make money. If you are a rehabber and have a good team in place, you may not be needed during the day. If you wholesale and have access to the internet during the day, you may be able to work from your phone until you can sneak out for a minute and make whatever calls you need to make. Before you consider leaving your job, you should look at what you would be doing during the day that you couldn’t do if you were still employed. If you truly think you are leaving money on the table, you should jump in with both feet. If not, you would be wise to take in a paycheck for as long as you can until you are ready.
Many investors are currently working full time and investing at the same time. This workload may not be for everybody, but it certainly can be done. Look at your current situation and see what you are giving up in return and see if it makes sense for you.